AUD/USD, NZD/USD, USD/CNY – Asian Session Daily Forecast
The U.S. dollar has posted gains against the Australian and New Zealand currencies in early Thursday trade. The Chinese yuan is trading sideways. Later in the day, the U.S. releases durable goods orders and manufacturing PMI, so we could see stronger movement from these currencies in the North American session.
AUD/USD
AUD/USD is slightly lower in the Thursday session. In European trading, the pair is trading at 0.6841, down 0.28% on the day.
Manufacturing, Services PMIs Close to 50
The manufacturing PMI improved in October to 50.1, up from 49.4 a month earlier. Services PMI slipped to 50.8, down from 52.5 in September. These readings point to stagnation in the manufacturing and services sectors.
AUD/USD Technical Analysis
AUD/USD has remained range-bound all week, but the pair has been trying to break out. AUD/USD tested resistance at 0.6880 early in the week, but has shifted direction and is currently putting pressure on support at 0.6840. Can the pair sustain the downtrend and break below this line? If so, it has room to move lower and put pressure on the round number of 0.6800.
USD/CNY
USD/CNY continues to have a quiet week. In Thursday’s European session, the pair is trading at 7.0677, up 0.08% on the day.
USD/CNY Technical Analysis
USD/CNY remains range-bound. A downtrend earlier in October saw the pair test support at 7.0592. However, that rally by the yuan fizzled, as USD/CNY has since traded between 7.0592 and 7.1100. USD/CNY tested support at 7.0592 in the Asian session. This support level has held since mid-August, so a break below this line would be a major development.
NZD/USD
NZD/USD is slightly lower in Thursday trade. In the European session, the pair is trading at 0.6402, down 0.25% on the day.
NZD/USD Technical Analysis
NZD/USD tested resistance at 0.6420 in the Asian session. This line is proving to be resilient and has held firm since mid-September. Traders can expect the pair to continue testing this line for the remainder of the week. Above, there is resistance at 0.6460. On the downside, there is support at 0.6360.
